Bond yield surge pushes fixed mortgage rates higher across Canada - CMT News - Canadian Mortgage Trends

Fixed mortgage rates are climbing again after another jump in Canada’s 5-year government bond yield, extending an upward trend that began around the outbreak of the war in Iran in late February. The yield has risen from roughly 2.6% before the war to above 3.6%, topping 3.7% on Monday. CIBC and TD raised select 3- and 5-year fixed mortgage rates on Tuesday, joining other major banks and lenders that have increased rates in recent weeks.

USD/CAD rose on Friday as the Canadian Dollar weakened after a soft domestic jobs report, while a firm US Dollar added to the move. The pair was trading near 1.4276, a level last seen in April 2025, as markets repriced the Canadian outlook and leaned towards further US policy tightening. Statistics Canada said employment fell by 68.3K in September versus expectations for a 7K rise, following a 41.7K decline in August. The unemployment rate ticked up to 6.5% from 6.4%, while participation slipped to 64.8%, its lowest since December 1997 outside the pandemic period. Canadian yields dropped, with the two-year down more than 8 basis points to about 3.199%, while the US Dollar stayed near an 18-month high and the DXY sat around 102.30 after an intraday low of 101.92. The US two-year yield held near 4.797%, about 160 basis points above Canada’s, as attention shifts to the University of Michigan sentiment reading and 1-year and 5-year inflation expectations.

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AtlanticNova ScotiaNew BrunswickPrince Edward Island Newfoundland and LabradorCalgaryLethbridgeKitchenerGuelphNorthern OntarioSudburyNorth BaySault Ste. MarieTimminsOttawaKingstonBrockvillePembrokeReginaYorktonSaskatoonPrince AlbertTorontoWatchWeatherPeelHamiltonDurhamYorkHaltonNiagaraQueen's ParkToronto City HallIn PicturesVancouverVancouver IslandCanadaLocal SpotlightRoyal FamilyPoliticsNanosPower PlayQuestion PeriodFederal Election 2025WorldMideast ConflictRussia-Ukraine WarWatchLatestCaptured on CameraPoliticsLifestyleConsumerHealthExplainedEntertainmentTechnologyDeception DecodedAutosEnvironmentBusinessInflationReal EstateAutos